Broken Hill Prospecting IPO Raises $4.47 million

6 February 2011

The initial public offering of base metal explorer Broken Hill Prospecting Ltd (ASX, NZSX code BPL) has closed, raising $4.47 million.

The Australian and New Zealand stock exchange listing of the company is being undertaken to accelerate and expand development of BPL’s mining tenements at Thackaringa, 25km south-west of the famous mining centre of Broken Hill, NSW.

“With this new funding, we will be able to more quickly assess the 13 base metals prospects outlined on our tenements and also complete a pre-feasibility study on our Pyrite Hill and Big Hill cobalt deposits,” BPL director Mr Geoff Hill said.

BPL’s manager at Thackaringa, Heritage Gold NZ Ltd, announced in mid-December that RAB drilling at Pyramid Hill and Himalaya North base metal prospects had encountered strongly anomalous copper, lead and zinc results from lode bearing rocks over 500m strike lengths.

A 12-hole follow-up RC drilling program to test the mineralisation to 100 metres depth is now under way on both prospects. Results are expected by early March.

Mr Hill said that the funds raised by BPL will also allow it to more fully assess the commercial potential of its cobalt project. At Pyrite Hill and Big Hill the total inferred cobalt mineral resources have been estimated at 15 million tonnes with a combined average grade of over 2.1 pounds per tonne. The deposits remain open along strike and at depth.

Broken Hill hosts the richest silver-lead-zinc ore body of its type globally, has been mined continuously for more than 120 years, and is still being worked today. Around 200 million tonnes of high grade ore has been extracted, valued at more than $80 billion, and the next generation of miners and explorers is discovering new mineralisation in nearby areas using innovative exploration techniques.

Listing of the shares on the stock exchanges is anticipated on or about 15 February.

For further information call

Geoff Hill, Director, Broken Hill Prospecting Ltd    +61 411 539 000
Aust media – Alan Deans, Partner, Last Word Corporate Communications +61 427 490 992